The BCG Matrix, developed by the Boston Consulting Group, is a strategic tool used to evaluate a company's product portfolio by categorizing products based on market growth and market share. It consists of four key categories: Stars, which have high market share and high growth, requiring investment to sustain their position; Cash Cows, which hold high market share but operate in low-growth markets, generating significant cash flow with minimal investment; Question Marks, products with low market share in a high-growth market that necessitate substantial investment and pose risk; and Dogs, which have low market share in low-growth markets, often generating minimal profit and considered for divestment. This matrix assists companies in making informed decisions about resource allocation to optimize growth and profitability.